Fifth Third 529† Certificates of Deposit
Call Today 1-800-972-3030Save for your child's or grandchild's college education with CDs in a wide variety of terms ranging from 3 months to 12 years (144 months). The Ohio Tuition Trust Authority offers various college savings options under its CollegeAdvantage 529 Savings Plan (including the 529 CD) to anyone, regardless of state residency, who would like to save for future college expenses. With a 529 CD, you maximize your return by taking advantage of longer-term rates with the security of both FDIC insurance and 529 tax advantages.
Before you deposit, consider whether your home state offers a 529 plan that provides its taxpayers with state tax and other benefits not available through this plan.
529 CD Details
- $500 minimum to open
- Premium interest rates
- Single maturity
- Terms available from 3 months to 12 years (144 months); early withdrawal penalties apply
- Guaranteed rate of return with FDIC backing
- Pay no taxes as your account grows. Withdrawals used for qualified higher education expenses are exempt from Federal* (and in some cases state) income tax.
- 30-Day Maturity Notice
- Automatic transfer to a 529 Savings Account at maturity where funds can be distributed, re-allocated or left in the 529 Savings Account to continue to earn interest
529 CD Interest Rates & Yields
| 529 Product - Term | Interest Rate | Annual Percentage Yield** |
|---|---|---|
| 3-5 Months | 0.25% | 0.25% |
| 6-11 Months | 0.30% | 0.30% |
| 12-23 Months | 0.50% | 0.50% |
| 24-35 Months | 1.00% | 1.00% |
| 36-47 Months | 1.24% | 1.25% |
| 48-59 Months | 1.49% | 1.50% |
| 60-83 Months | 1.98% | 2.00% |
| 84-119 Months | 1.98% | 2.00% |
| 120-144 Months | 1.98% | 2.00% |
Withdrawal Penalty
A penalty will apply if principal is withdrawn prior to the maturity date, based on the term of the CD.
| CD Term | Penalty for Early Withdrawal |
|---|---|
| 7 Days - 364 Days | 1% of principal withdrawn |
| 365 Days - 36 Months | 2% of principal withdrawn |
| 36 Months or Greater | 3% of principal withdrawn |
| The amount of the penalty shall not exceed interest earned, except for during the first 6 days of the term where a minimum 7 day interest penalty must be applied and may be deducted from principal. The entire penalty will be waived in the event of death, court ordered withdrawal, or court declared incompetency of an owner. Partial withdrawals are not allowed. | |
Renewal
Renewal is not available for a 529 CD. Only single-term is available, with 30-day Maturity Notice.
For more information or to obtain a Fifth Third 529 CD, call 1-800-AFFORD-IT (1-800-233-6734), fill out a secure online application at CollegeAdvantage™, or visit a Fifth Third Banking Center near you.
Disclosures
*Earnings on withdrawals not used for qualified higher education expenses may be subject to federal income tax and a 10% federal tax penalty.
** Annual Percentage Yield (APY) accurate as of 11/27/2012. $500.00 minimum deposit required to open a CD. Penalty for early withdrawal. For CDs issued in an amount less than $100,000, 529 Plan CDs and IRA CDs, only.
† CollegeAdvantage is offered and administered by the Ohio Tuition Trust Authority. CollegeAdvantage is described in the current Offering Statement and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before opening an account. Participation in the Fifth Third Bank options does not guarantee that contributions plus earnings will be adequate to cover future college expenses; contributions and earnings are not guaranteed by the state of Ohio or the Ohio Tuition Trust Authority. For a current copy of the Offering Statement, go online at www.collegeadvantage.com, call 1-800-AFFORD-IT (233-6734) or ask a Fifth Third Bank representative.
Fifth Third Bank does not provide tax advice; consult your tax advisor.
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